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MYOB – How to deduct and record child support in payroll

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MYOB – How to deduct and record child support in payroll

MYOB – How to deduct and record child support in payroll

Client called – Asked how to deduct and record child support in payroll for a staff member.

Answer We will need to set up a new Payroll Category, (as there is none by default), create a new liability account to track child support, set the amount requested, tick on the category for the staff member, check it deducts correctly in a pay run, then later when paying the child support as employer, allocate back to the new liability account.

Here’s how

1.     Go to Payroll Command Centre > Payroll Category >Deductions Tab > New… OR… Cards Command Centre > Cards List > Employee tab > open employee required > Payroll Details > Deductions > Create New Payroll Category (or from Actions down below in earlier V19 etc).

MYOB Child support 1

2.     Set up with name (add employee as it is usually unique for them, and different for another who may also have Child Support obligations), allocate to a NEW Liability account you create, set the calculation to % or $ set amount.

MYOB Child support 2

3.     OK to save, then ensure this is now ticked on for that employee back in Deductions in his card (if you came from the Payroll Centre, click the Employee icon and tick the employee it relates to) > OK to close card.

4.     Start a sample pay run and ensure the calculation works.

MYOB Child support 3

5.     It should be 4% of the gross salary in our example – $769.23 x 0.04 = $30.769 – correct.

6.     WHEN Paying Support – allocate to the new Child Support Liability account.

MYOB Child support 4

Need help? Not sure? Call for FREE 30min advice / strategy session today!

                Call 0407 361 596 Aust and also get FREE “Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right!


Author: Account keeping plus (Business accounting software

Administration, Bookkeeping and Compliance for small business, and Self-Managed Super Funds (SMSF) Training, trouble-shooting, or we can do the books and payroll for you! Self Managed Superannuation Fund Service Provider, Free support 30 min call 0407 361 596 Australia (+61 drop 0 from overseas) MYOB Certified Consultant, Reckon/QuickBooks Professional Partner.

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